***Guest Appearance
Credits to:
https://www.youtube.com/@hbgcapital662
“Professional Capital Raiser Shares How To Raise Money Immediately with Jay Conner”
https://www.youtube.com/watch?v=99BpAmJOs_w
If you’re an aspiring or seasoned real estate investor, there’s one hurdle that inevitably determines your growth: access to capital. How do you finance deals when traditional banks close their doors, market conditions shift, or you simply want more flexibility and profit? Jay Conner, a recognized authority in private money for real estate, has plenty of answers—and in a recent conversation with Brandon Cobb, he broke down the essential strategies and mindset shifts that have allowed him to thrive through market cycles.
From Bank Loans to Private Money: Jay’s Breakthrough
Jay Conner started investing in real estate in 2003, primarily focusing on single-family homes in the relatively small market of Eastern North Carolina. For years, he played by the traditional rules—going to local banks, submitting to their criteria, and letting lenders set the terms. That was until the financial crisis of 2009. Suddenly, despite a spotless record and strong deals under contract, Jay’s line of credit was closed with no warning.
Faced with the potential collapse of his deals and business, Jay asked himself a critical question: “Who do you know that can help fix your problem?” This led him to an old friend, who introduced him to the world of private money—individuals willing to lend their personal funds or retirement accounts for real estate investments, often at competitive rates and flexible terms.
The Teacher’s Mindset: Educating, Not Begging
Jay’s approach flipped the typical script. Instead of chasing after money, he put on his “teacher hat.” He proactively educated his network—friends, fellow churchgoers, Rotary Club members, and other contacts—about what private lending was, how it worked, and the safe, lucrative returns they could earn.
A crucial point: Jay never asked anyone for money directly. He simply explained his private lending program, laid out the potential and security, and let interest organically develop. The goal was building trust, demystifying the opportunity, and leading with a servant’s heart. As a result, he raised $2,150,000 in less than 90 days—without ever “pitching” a deal or acting out of desperation.
Strategic Steps: Separating Education from the Ask
Jay highlighted a key mistake many new investors make: mixing education about private lending with direct requests for funding on a specific deal. This can feel pushy and overwhelming, and it’s the fastest way to turn off a potential private lender. Instead, he recommends two separate steps:
- Educate First: Explain your lending program, rates, security, and process. Answer questions, build confidence, and see who is interested in principle.
- The Good News Call: When the right deal is available, you make a simple call: “I’ve got great news—I can now put your money to work on this deal.” This assumes the groundwork is already laid and the lender trusts you.
Expanding Beyond Your Inner Circle
What happens when you’ve tapped your immediate network? Jay suggests organizations like Business Networking International (BNI) or local Rotary Clubs, which allow you to grow contacts exponentially. These groups thrive on referrals, and, as the only real estate investor in the group, you’re uniquely positioned to connect with new potential lenders eager for better returns on their idle capital.
Compliance & The Power of One-Offs
A question that often arises: How do you make sure you’re staying within SEC and legal boundaries? Jay makes it clear he only does “one-off” deals—each lender funds a specific property, protected by a promissory note and deed of trust, rather than pooled funds or syndications. This keeps you out of complex securities territory.
Ready to Get Started?
Jay now offers a free “7-Day Private Money Challenge” that walks investors step-by-step through the process of raising private money, identifying prospects, staying compliant, and building financial freedom.
In the end, Jay’s story proves that with the right mindset—educator, not beggar—there’s more money available for real estate deals than there are worthy projects. The key is knowing how to connect, inform, and serve.
10 Discussion Questions from this Episode:
- Jay Conner shares that he has never missed out on a real estate deal since he began using private money in 2009. What aspects of private money do you think make it so reliable for investors?
- Jay describes a pivotal moment when his line of credit was unexpectedly revoked by his bank. How did this challenge shape his approach to funding real estate deals, and what lessons can we learn about adapting to unexpected financial hurdles?
- The concept of “teaching, not pitching” is key to Jay’s method of raising private money. In your experience, why might this approach work better than directly asking for funding?
- Jay emphasizes the importance of separating the conversation about the lending program from the conversation about a specific deal. How does this strategy help avoid overwhelming potential private lenders?
- Jay talks about leading with a “servant’s heart” when educating potential lenders. How can this mindset build trust and credibility with investors?
- What are the main differences Jay outlines between borrowing money from banks, hard money lenders, and private individuals? Which method seems to provide the most flexibility for the borrower?
- After exhausting personal contacts for raising capital, Jay recommends joining organizations like Business Networking International (BNI). What benefits might real estate investors gain from being active in these networks?
- In discussing SEC compliance, Jay warns listeners about legal considerations of raising private money. What structural aspects of his method keep investors compliant with regulations?
- Jay recounts his method of making the “good news phone call” instead of pitching deals. Why is timing and framing so important in maintaining healthy investor relationships?
- The new seven-day Private Money Challenge is mentioned as a resource for learning how to attract private lenders. What are some core outcomes or skills people might expect after completing this challenge, according to the episode?
Fun facts that were revealed in the episode:
- Jay Conner never asks for money
Since 2009, Jay hasn’t asked a single person for money to fund his real estate deals. Instead, he “puts on his teacher hat” and educates people about private money lending, attracting over $8.5 million without ever making a direct request. - Big profits, small town
Jay operates in a small market of only 40,000 people in Eastern North Carolina, yet his business averages $82,000 profit per deal on single-family homes. He’s proof that “you don’t have to be in a big market to make a lot of money.” - Lunch and learn raised nearly a million dollars
One of Jay’s biggest private money wins came from hosting a lunch event at a local club, where he educated 20 people about private lending. After his presentation, he walked away with $969,000 in pledged investments—all from just one event!
Timestamps:
00:01 Profiting in Small Markets
03:26 Investing Journey with Local Banks
08:29 Private Money Lending Program Introduction
11:12 Raising Private Money Successfully
14:26 Deal Funding Instructions for Brandon
19:30 Profitable Real Estate Investment Opportunity
21:56 Generating Referrals Beyond Your Network
26:41 Real Estate Investor Lead Generation
30:36 Ways to Raise Private Money
32:37 Freedom Number Financial Strategy
34:55 Business Fundraising Game Changer
Connect With Jay Conner:
Private Money Academy Conference:
Free Report:
https://www.jayconner.com/MoneyReport
Join the Private Money Academy:
https://www.JayConner.com/trial/
Have you read Jay’s new book, Where to Get the Money Now?
It is available FREE (all you pay is the shipping and handling) at https://www.JayConner.com/Book
What is Private Money? Real Estate Investing with Jay Conner
http://www.JayConner.com/MoneyPodcast
Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $67,000 per deal.
#RealEstate #RealEstateInvesting #RealEstateInvestingForBeginners #Foreclosures #FlippingHouses #PrivateMoney #RaisingPrivateMoney #JayConner
YouTube Channel
https://www.youtube.com/c/RealEstateInvestingWithJayConner
Apple Podcast:
Facebook:
https://www.facebook.com/jay.conner.marketing
Twitter:
https://twitter.com/JayConner01
Pinterest:
https://www.pinterest.com/JConner_PrivateMoneyAuthority
Expand Your Private Capital Sources Beyond Personal Networks
Narrator [00:00:01]:
If you’re a real estate investor and are wondering how to raise and leverage private money to make more profit on every deal, then you’re in the right place. On raising private money, we’ll speak with new and seasoned investors to dissect their deals and extract the best tips and strategies to help you get the money, because the money comes first. Now here’s your host, Jay Conner.
Brandon Cobb [00:00:44]:
Hey everybody. Welcome back to another episode. I’m your host, Brandon Cobb, a cofounder of HPG capital. I’ve got an awesome guest on the show today. We’re going to be talking about raising money along with a lot of other things. Jay Connor’s on the show. He’s been in the investing game since 02/2003. He’s rehabbed over 450 homes.
Brandon Cobb [00:01:03]:
He makes, on average, over $71,000. He’s completed over 52,000,000 in real estate transactions. He’s consulted on one with over 2,000 investors. He’s a leading expert on private money and raising money. So if you’re in a position where you need to raise money for your business, especially real estate, you’re gonna wanna listen to this. Jay, welcome to the show.
Jay Conner [00:01:25]:
Oh, my lands, Brandon. Thank you so much for inviting me to come along and talk about my most favorite subject that I’m so excited about, that being private money. And that’s because simply private money has had more of an impact than any other strategy that we’ve implemented in our real estate investing business. I’ve never missed out on a real estate deal since 02/2009 since we started using private money.
Brandon Cobb [00:01:50]:
I love it. We’re gonna talk about it. We raise a lot of private money for our business. So I’m interested in getting into the tips and tricks and strategies that you’re using. There are ways to buy real estate with, like, no money down using all these different strategies. I wanna get into that. Before we do, what’s your story for those in the audience listening who don’t know who you are?
Jay Conner [00:02:11]:
Sure. Well, I started investing in single-family houses. Now I’ve done other types of real estate as well. I’ve done condominium development from the ground up. I’ve done a shopping center from the ground up. But my main focus has been single-family houses since 02/2003. Here in Eastern North Carolina, in a small market, only 40,000 people in our total market, we do two to three deals a month, single-family houses. So not a lot of deals.
Jay Conner [00:02:38]:
However, as of now, our average profits are $82,000 per deal. And I don’t say that to brag in any kind of way. I say that to make a point. And the point is, you don’t have to be in a big market to make a lot of money. I’d rather be a big fish in a small pond. And if you’ve got your marketing turned on and you’re finding the deals, you’ve got your leads coming in, and you’ve got your funding lined up ready to go, then, you know, you can have a significant amount of business in a very, very small market. There’s an argument to be made that you’re really, really in a much better position if you’re focused on a smaller market than competing with all those other real estate competitors, you know, in big markets, etcetera. But anyway, I digress.
Jay Conner [00:03:26]:
So I started investing in single-family houses in 02/2003. From 02/2003 until 02/2009, to fund my real estate deals, Brandon, all I knew to do was go to the local bank and get on my hands and knees and put my hands underneath my chin and, you know, raise my skirt so the banker can look at all my assets and pull my credit score and all that stuff and borrow money from the local bank. You know, when I was doing that, the bank made the rules. They set the interest rate. They said they did all the underwriting and etcetera, which, of course, is what we understand is the normal way that you borrow money. Well, that worked out fine from 02/2003 until January 2009. And, Brandon, in January 2009, I picked up my phone. Believe it or not, we still have handsets here in North Carolina, but there are cords attached to them.
Jay Conner [00:04:22]:
Most people don’t even know what that is.
Brandon Cobb [00:04:24]:
For those just listening, he he he he’s got a phone sitting by his desk that’s got, like, the cord attached to it.
Jay Conner [00:04:31]:
So I picked up the phone, and I called my banker. His name was Steve. This was January 2009. Now, bear in mind, Steve and I had been doing a lot of business from 02/2003 until January 2009. We did a ton of deals. He had funded a bunch of real estate houses for me. Anyway, I had two deals under contract. I called up Steve to tell him about the two deals, you know, the numbers, etc., which Steve and I had had this conversation many, many times.
Jay Conner [00:05:02]:
Well, I learned like that, like in just a few seconds, that my line of credit had been closed with no notice to me. I wish I’d known ahead of time before I put houses under contract and tied up earnest money, etcetera. Well, I learned that my line of credit had been closed. And I said to Steve, I said Steve, what in the world are you talking about that you’ve closed my line of credit? I got a great credit score. We have a great relationship. Never missed payments. We’ve got a six-year history here. What do you mean you’re shutting down my line of credit? And Steve said, Jay, don’t you know there’s a global financial crisis going on right now? I said, no.
Jay Conner [00:05:43]:
But you just gave me a financial crisis right now by not funding my two deals, and I don’t have any other way to fund them. So I hung up the phone, Brandon, and I sat here. And I’m gonna share with you and your audience right now a very, very important, powerful question Uh-huh. That I ask myself. You know, the power is in the asking the right questions.
Jay Conner [00:06:06]:
I ask myself this question, and the question I’m gonna share will help anybody fix any problem they’ve got going on in their life. I don’t care if it’s financial, relationships, health, or career, it doesn’t matter. Whatever your problem is, here’s the question to help fix your problem. And by the way, an abundant mindset says there’s always an answer. There’s always an answer. There’s always more than one answer. So here’s the question I asked myself. I said, Jay, who do you know? By the way, Brandon, these people are going around saying, Every problem is an opportunity.
Jay Conner [00:06:49]:
I want to throw up. I didn’t have an opportunity. I had a problem, right? I had these deals under contract, no way to fund them. So I asked myself, and here’s the powerful question. I said, Jay, to myself, I said, Jay Who do you know that can help fix your problem? You know, it’s not how. It’s who. Who do you know? And when I asked myself that question, who do I know that can help fix my problem of not having funding and financing for my real estate deals? I immediately thought of Jeff Blankenship. Now, Jeff Blankenship is a dear friend of mine and my wife, Carol Joy.
Jay Conner [00:07:30]:
We’ve known him for years. And in 02/2009, he was living in Greensboro, North Carolina, and he was investing in real estate. So I called up Jeff, and I told Jeff my problem. I told him what had just happened. I told him about a conversation I just had with Steve, the banker. And immediately Jeff said, Well, welcome to the club, Jay. I said, What club? He said, The club of losing your line of credit at the bank, my bank just cut me off last week. I said, Oh, lord.
Jay Conner [00:07:59]:
I’ve called the wrong person. He’s in the same boat I am. I said, Well, Jeff, what are you gonna do to fund your deals? He said, Well, have you ever heard of private money? I said, No. He said, Have you ever heard of self-directed IRAs and how people, individuals, can loan money to real estate investors from their retirement accounts and earn interest either tax-deferred or tax-free. Yeah. No. I never heard of that. So I knew Jeff had told me something.
Jay Conner [00:08:29]:
So I hung up the phone, and I researched private money. I researched how people can have a self-directed IRA and loan money out to real estate investors. So what did I do? I put on, I put, first thing I did was I put my program together. My what? My program. I put that together to where I was going to teach people in my warm market, people I’ve already got connections with, I go to church with, go to the Rotary Club with, etcetera. I could teach them what private money is and how they could earn high rates of return, safely and securely. So let me stop right there. Here’s an important learning point that I had to learn.
Jay Conner [00:09:14]:
You see, when you borrow money from the bank or hard money lenders for your real estate deals, they make the rules. They are the underwriter, which sounds right. If you’re learning the money, you ought to make the rules. That’s traditionally what we think. They set the interest rate, they set the frequency of payments, they set the length of the note, etcetera. But in this world of private money, the lender doesn’t make the rules. We, as the borrower, make the rules, and that is a 180-degree shift going in the opposite direction. You see, we’re not asking, begging, chasing, persuading, or trying to talk anybody into loaning us money.
Jay Conner [00:09:54]:
You see, here’s what’s interesting, Brandon. I’ve never asked anybody for money since January 2009. I’ve never asked anybody for money. And they said, Jay, well, how do you have $8,500,000 of private money from individuals funding your deals, and you never ask for money? Well, here’s the secret to that question. I put on my teacher hat. I put on my teacher hat. I put on my private money teacher hat. And I went about teaching people that I already had a connection with.
Jay Conner [00:10:29]:
Now you’re gonna run out of people with your connection. I get that, and I got a fix for that as well. But I started teaching people in my network, people I already know, got an association with, what private money is, how they can earn high rates of return safely and securely, do they want to use investment capital, do they want to use retirement funds? And I taught them my program. I taught them here, here’s how my program works. Here’s the interest rate I pay. Here’s how you can get your money back in case of an emergency. Here’s how you’re protected. If I lose my mind and move to the Caribbean, how are you protected? How do you get your money back? So that’s the program that that that I went about teaching people.
Jay Conner [00:11:12]:
And I was able to raise $2,150,000 in less than ninety days by simply teaching, leading with a servant’s heart. You know, here’s what’s interesting, Brandon. Not one of my 47 private lenders that I have today ever heard of private money, ever heard of self directed IRAs, ever heard of this world until I put on my teacher hat and I taught them what private money is and how they can earn these kinds of rates of return, safe and securely. Now, you know, there’s something that’s got a smell to it, and that word is desperation. Desperation has got a smell to it. What I mean by that is, if you are desperate, I mean, the worst time to be raising private money is when you need it for a deal. That’s the worst time to be raising private money. The best and easiest time to raise private money is when you don’t need it for a deal.
Jay Conner [00:12:08]:
So that’s why it’s so important to separate the conversations with your new prospective potential private lenders that’s never heard of private money before. You separate the conversation between the program that you’re offering, the private lending program you’re offering, and, you know, what you’re the opportunity you’re offering them, and then having a deal for them to fund. Very, very important. Separate that. Don’t put that together. You’re asking them to make too many decisions if you’re talking about private money and you’ve got a deal for them to fund. So once they’re all excited about the program, say, Yeah, I want to start. I’d love to do this.
Jay Conner [00:12:47]:
I said, Well, I don’t have a deal for you today. I don’t have a deal for you today, but I’ll put you a minute of work for you just as soon as possible. So then, how do I get my deals funded when I have a deal for them to fund without ever pitching a deal? Brandon, I’ve never pitched a deal since 02/2009, so how do I get it funded? Here’s the secret sauce. The answer to that question is the good news phone call. The good news phone call. Well, how’s the good news phone call work? Well, I’m gonna give you the script. I’m gonna give you the script right now. So, Brandon, let’s say you’re one of my new private lenders, and you’ve told me you’ve got a hundred and $50,000 to work with.
Jay Conner [00:13:29]:
And, you know, I’ve told you I’ll put your money to work for you just as soon as possible. And let’s also assume it’s not liquid capital. Let’s assume that it’s retirement funds. And I’ve introduced you to the self-directed IRA company that I recommend, and you’ve moved that retire those retirement funds from a four zero one k or wherever over to the self-directed IRA company. Now you’ve moved it over there. It took you a couple of weeks to get there. Now you’re ready to fund my first deal. You’re ready to go.
Jay Conner [00:13:58]:
You’re just waiting for the phone call. So I call you up with my handset telephone right here. I call you up, and you answer the phone, and we have a little chit chat. And then here’s exactly what I say. I say, Brandon, I’ve got great news for you. I can now put your money to work. I’ve got a house over here in Newport, North Carolina under contract to purchase. It’s got a after repaired value of $200,000.
Jay Conner [00:14:26]:
The funding required for the deal is 150,000, and, of course, that matches up to what you’ve got set aside over there at the self-directed IRA company. And the closing is gonna be next Friday. So, Brandon, I’m gonna need you to have your funds wired, your hundred and 50,000 wired to my real estate attorney’s trust account, Collatz, who’s handling the closing, by next Thursday, and I wanna have my real estate attorney email you the wiring instructions. End of conversation. Notice I didn’t ask Brandon, do you want to fund the deal? That’s the most stupid question in the world I would ask, Brandon. Of course, Brandon wants to fund the deal. He’s moved that money over to the retired self-directed IRA, a company that I recommended. Brandon’s not making any money, any interest on that money until he invests.
Jay Conner [00:15:15]:
So Brandon has been waiting for my phone call. And of course, I’m not gonna bring a deal for Brandon to fund that doesn’t meet the criteria of the program that I already taught him. So you see how this lays out sequentially in time. Teach the program, they tell you how much they have to work with, they give you a verbal commitment. Yeah. This is how much I wanna start with. By the way, they always have more than they tell you initially. And then you call them up with a good news phone call, and you put their money to work for them.
Jay Conner [00:15:46]:
It’s that simple. You see, one the biggest mistake that I’ve, witnessed and observed with new real estate investors raising money is they talk too much, and they try to talk people into doing something. And you know what? That’s not the way to go. I’ve got one foot out the door the whole time that I’m sharing and teaching my program, because there’s more money than there are deals.
Brandon Cobb [00:16:12]:
Mhmm. Wow. That’s incredible. A big thing that you said there is leading with a servant’s heart, you would go and teach how to lend money, and what to look for. What did that look like? Walk us through that. How did you get that set up? How did you market that teaching? And how did you structure it?
Jay Conner [00:16:32]:
Yeah. So there are multiple ways to get the word out. Right? To let people know that this opportunity exists. So, there’s one. You can meet somebody at the coffee shop and tell them about the program. You can leverage your time. I raised $969,000 at one private lender event. What did I do? I booked the Dunes Club, you know, booked the nicest place you can.
Jay Conner [00:17:03]:
You’re gonna feed people lunch. And I invited about 20 people to the luncheon, and I had my CPA there and my realtor there, and my real estate, my realtor there and my, real estate attorney I had there. And at this luncheon, I fed them lunch. And then I took about 3 minutes, and I presented my private lending PowerPoint presentation that I put together, which teaches the program. What’s the interest rate they can earn? How can they get their money back in case of an emergency? What’s the maximum loan-to-value, etc.? So I teach that. Well, at the end of that luncheon, I ended up with $969,000 pledged from different people who were interested in moving forward. So on one, I also recorded a sixteen-minute audio called stress-free investing that I now just email out. I can text it, you know, to potential private lenders.
Jay Conner [00:17:58]:
I record that audio for my members and students as well. And so what I’ll I’ll share is a short story. How in the world did I get my first two hundred and fifty thousand dollars from a private lender when I put my program together? Well, here’s the short version. It was on a Wednesday night at 07:30. Carol Joy and I went to the Morehead City Church of Christ on Barber Road here in Morehead City. And I went there, and I walked into the foyer, and I was looking for a gentleman named Wayne. I’ve known Wayne for several years. And I walked up to Wayne before Bible study started, and I said, Wayne, I’d love to talk to you for a few minutes after Bible study, if you’ve got a few minutes.
Jay Conner [00:18:40]:
He said, sure. So we got together after Bible study. We went down to the nursery there in the church building. And here’s exactly what I said to Wayne, Remember, I never beg, chase, persuade, sell. What do I do? In this case, I’m going to share a very magical phrase. It’s called, I Need Your Help. I Need Your Help. So let me tell you exactly what I said to Wayne.
Jay Conner [00:19:06]:
Never ask for money. So I started talking to Wayne. I said, Wayne, you know everybody in this town. And he did. He was the original Zenith television dealer. If you don’t know who the Zenith television dealer is, you’re just too young to remember life before Walmart. That’s all I can say. But anyway, I said, Wayne, you know everybody in this town, and he did.
Jay Conner [00:19:30]:
I said, Here’s what I need your help with. I said, Wayne, when you run across somebody that’s complaining about the amount of money, the little amount of money they can get in the local CD at a bank, or the volatility, the stock market, and losing money in the stock market, would you refer them to me? Because I’ve now opened up my real estate investing business by referral only, word-of-mouth, and I’m paying insane high rates of return safely and securely. When you hear somebody complaining about that, would you refer them to me, and I’ll share my program with them? Well, what do you think Wayne said? He paused for a second, and he said, Well, now, Brother Jay, what you got going on there? I said, Well, what do you mean? He says, Well, what kind of rates are you paying? I said, Well, Wayne, are you saying you might be interested? He said, Well, yeah, I might be interested. I said, Well, why is that? He said, Well, my wife and I, we’re only getting 3%, and that’s what it was in 02/2009. We’re only getting 3% at the local bank and a certificate of deposit, and we’re losing money in the stock market. He said, What kind of rates are you paying on this program, Jay? I said, well, you know, that sort of depends on the deal. I said, but Wayne, what sounds high to you? He said, Well, we’re getting 3%. He said, I don’t know.
Jay Conner [00:20:43]:
Maybe five or 6%. I said, Wayne, I can’t pay you five or 6%, but I can pay you 8%. He said, Put me down for $250,000. So the next day, I went to his and his wife’s home, and I took the whole program with them, the interest rate, and how they’re protected. I don’t borrow unsecured money. They’re gonna get a deed of trust, you know, a mortgage secured in their note. My maximum loan-to-value is 75% of the after-repaired value. I didn’t say 75% of the purchase.
Jay Conner [00:21:15]:
I always bring them a big check when I buy the house. Uh-huh. And, you know, how they’re protected, how they can get their money back early. So I taught the program to them. How did I do that? By having my teacher hat on, right? -Yeah. -I’m not chasing, begging, right? I’m sharing, I’m teaching. And so by the end of that conversation, they didn’t pledge me $250,000 they pledged me $500,000 by the end of that conversation. So there’s just a little short story as another example of how we go about attracting private money without chasing, begging, selling, or persuading.
Brandon Cobb [00:21:56]:
So these were basically what you did was you pulled out your Rolodex and you started calling people and said, hey. If you know somebody, I need your help. If you know somebody who is struggling with the returns in the bank, if they’re tired of earning a quarter point in the bank or 3% in your case, and they’re wanting to earn more, will you refer them to me? That creates curiosity. That’s the goal of these conversations that I see a lot of people make the big mistake in is that they’re asking for the business. You ask for advice, and your whole goal is to try to create curiosity where people are now starting to talk to you about it. What do you do when you’ve tapped out all your friends and family? You’ve tapped out the network because that inevitably happens in the real estate world and the capital raiser’s lifetime, like their steps. And step one’s like friends and family, and you grow it and you get referrals, you ask for referrals. There comes a time when you have to do something to generate, you know, accredited investors or people who are outside that network.
Brandon Cobb [00:22:57]:
What does that look like with your model?
Jay Conner [00:23:00]:
Absolutely. So you’re right. I mean, you’re gonna run out of the connections that you have in your cell phone. By the way, you said, a moment ago, you were recapping what I said. You said to go through your Rolodex. So, for those of you who don’t know what a Rolodex is, Brandon is referring to the contact list in your cell phone. Alright? So
Brandon Cobb [00:23:22]:
Yeah. Just in case there’s, like, some young uns listening. I’m a millennial, and I was kinda getting phased out of that whole Rolodex thing that’s by your desk, and you sort through the cards and the business cards on it. Yeah. And it’s funny. I haven’t seen a Rolodex in, god, forever, but I, yeah, I still refer.
Jay Conner [00:23:38]:
To it as that. My dad had a Rolodex on his desk, and it was, I mean, it was a Rolodex. Right? Yeah. Anyway, back to your question. So, how do you expand your warm connections? How do you grow your network very, very quickly? Well, I’m gonna give you one right now, hands down, that will grow it overnight exponentially. At least it did for me. And here it is. Pull the curtain back.
Jay Conner [00:24:09]:
Business Networking International, BNI. BNI. And that this organization was started way back by Ivan Meisner. And the way BNI works, and I’m telling you, pretty much every town in America’s got one. I mean, here in Morehead City, North Carolina, population 8,000 people. We got a BNI. And so when I joined BNI, initially, we had 23 members. Now here’s the way BNI works.
Jay Conner [00:24:40]:
Business International works is different than civic organizations. Civic organizations such as the Rotary Club, which, by the way, I recommend the Rotary Club as well. That’s a much longer-term play because you want to establish those relationships. Right? The more people you know, the more money you make, and the more money sticks to you. That’s all I can say. The larger your network has got a direct correlation to your net worth, correlation between your network and your net worth. Nonetheless, back to BNI, Business Networking International. This organization was created to lead with a servant’s heart in your local chapter and give your local your your your men your other members the BNI chapter leads for their business.
Jay Conner [00:25:30]:
Now, the way BNI works is that there truly is only one seat per profession in each chapter. There’s truly one realtor. That’s a very coveted seat. There’s only one attorney. There’s only one general contractor. There’s only one plumber, one electrician, one HVAC, one home what do they call that stuff? Oils. Essential oils. Those ladies that sell essential oils and have food parties.
Jay Conner [00:26:08]:
There’s only one essential oil lady, right? And so on and on and on and on. There’s only one water softener company, all right, representative. So now you come into BNI as the real estate investor. I promise you, when you go to your local BNI, there’s not another real estate investor in the group. You’re it. You’re the only real estate investor. Right? And so you join the group. The purpose is to leave with a servant’s heart and give your fellow members leads.
Jay Conner [00:26:41]:
Well, my lens, if you’re a real estate investor, how many leads are you going to be giving that crowd of people? A bunch, if you’re doing any kind of business. So what are you asking them to do? You’re asking them to send you leads for people who are not happy with the returns they’re getting on their investments. And so you’ve got a private lender investment opportunity. And once a week, you’ve got sixty seconds to let your other members know who you’re looking to get in front of. Well, a lot of times I’ll tell my local members, I’m looking to get in front of retired people or somebody that’s getting ready to retire, so I can talk with them about how self-directed IRAs, you know, work. I mean, people say, they’ll say, Jay, how do I start making my list of new private lenders? Well, look in your cell phone and make a list of everybody who’s retired in your cell phone. -Yep. -There’s a pretty good chance they got retirement funds.
Jay Conner [00:27:40]:
And in today’s market, I promise you there’s a good chance they’re not very happy with what’s going on with their retirement funds. So BNI will explode. I’ve got millions of dollars in new private money from just my fellow BNI members referring people to me who were looking to get high rates of return, safely, and securely. So there’s many other ways to expand your warm market, but that that one tip right there will blow you up.
Brandon Cobb [00:28:13]:
Go out to Business Networking International like this. It’s like a little mastermind group that’s kinda local, that they’ve got a lot of chapters across the country. So you’re going.
Jay Conner [00:28:23]:
Out Yeah. Just go to bandi.com, and you can look up your local area.
Brandon Cobb [00:28:27]:
Okay. I know that you’ve got a new seven day private money raising challenge. Can you tell us more about that?
Jay Conner [00:28:34]:
I’m so excited about it, Brandon. This is hot off the press. This is called privatemoneychallenge.com. Private money challenge Com. And the way this works is it’s seven days. It’s a seven-day series of videos that I just recorded, hot off the press, just recorded. And each video is only fifteen to twenty minutes long, so it’s very, very easy to digest. So when you enroll in privatemoneychallenge.com, you’ll immediately receive in your, inbox, in your email, the first video training.
Jay Conner [00:29:07]:
And then the next six days in a row at 9 AM Eastern Time, you’ll receive the subsequent video trainings. I’ll tell you what, it’s very engaging. I’m right there on the video talking with you. I give you just a little bit of homework each day, so to make sure you’re learning the information. And it’s a great way, a foundational way to get started on attracting private money for your real estate deals, you know, if you’ve never done private money before. And so let’s make sure everybody understands what we mean by private money. This is not institutional money. This are no banks.
Jay Conner [00:29:41]:
This is not a hard money lender. This is getting money from individuals, human beings ,just like you and me. And, of course, the big reason as to why you need private money is that if you’re buying real estate deals that are off market, yeah. That are for sale by owners, you’re missing out on the majority of the deals if you don’t have the cash ready to go because that’s what the majority of the people require.
Brandon Cobb [00:30:06]:
One thing I wanna make sure that we cover here because, you know, the the SEC, the security and exchange committee that kinda regulates, you know, raising capital, there’s there’s there’s laws around some of this stuff. What can capital raisers do to stay compliant? Because some people have an opinion that you’re, you know, you’re going out and you’re you’re selling a security on something. How do you navigate the compliance waters to make sure that you don’t end up in jail or do something wrong?
Jay Conner [00:30:36]:
Sure. So there are at least three different ways to raise private money structurally, as far as how you structure it. There is syndication, which you normally syndicate and raise private money when you are doing a multifamily or a commercial-type deal. You would hire a securities, an SEC attorney to draw a private placement memorandum for that. So there’s syndication. There’s also you you can draw up a fund where private lenders can invest in a fund, and then that fund, you know, invests in different properties. So here’s why the SEC does not have to be and is not involved and doesn’t want to be involved, quite frankly, in the way that I’m talking about raising private money. And that is everything that we do with single-family houses is what’s called one-offs.
Jay Conner [00:31:29]:
Now there’s a legal term for that, but that’s the, that’s slang, one-offs. So what’s a one-off? A one-off means you’ve got a single-family house, a single-family house that’s being funded by a private lender or maybe a couple of private lenders. That private lender or both of those private lenders are getting their promissory note, they’re getting their deed of trust or mortgage that is secured by that property. So no syndication, no funding, I mean, no fundraising for a fund. It’s a one-off. It’s that private lender that is funding that single-family house, not an SEC compliance issue.
Brandon Cobb [00:32:11]:
Okay. So because there’s a one on one type of structuring there, one investor, one house, that’s, I guess, there’s there’s some in in the SEC language, that doesn’t fall under what they would call, like, a security then.
Jay Conner [00:32:29]:
Correct. Correct.
Brandon Cobb [00:32:31]:
Wow. This is really interesting. So tell us a little bit more. Like, what do you unpack in the seven day program?
Jay Conner [00:32:37]:
Oh, wow. Well, one of the days, I’m doing something brand new that I’ve never done before, and that is I’m going through an exercise, and there’s a document for the viewer, the enrollee, to download. And what I teach is your freedom number. Now, what the freedom number is is how much money you need to have or have coming in for you to not only pay for your current bills and lifestyle that you have right now, but also help you create, well, what is the new lifestyle you want to live? What do you want your life to look like? Yep. How is it that you want to be free? And that’s why people get into real estate. So first we create that, but then I reverse engineer during the exercise, and I have the enrollee in the private, the private money challenge. We’re going to figure out how much private money you need to raise to do the number of deals that you want to do in your local area. And so I’ve put together my trademarked formula that teaches you, excuse me, exactly how much private money you need to raise to have the freedom that you want.
Jay Conner [00:33:59]:
So that’s one of the days. The very first day in the Private Money Challenge is we will go over exactly what private money is. You know, what do we mean by private money, which we’ve talked about a little bit here but not much? Then I’ve got a hold of the session on. Well, where do you find these letters, like, specifically? So I put together an exercise. I call it your top 44 list. So I teach the enrollee and the challenge how to identify the top private lenders that you have in your Rolodex cell phone. I’ve got a whole other session, a whole other day on how to work with self-directed IRA companies to get your real estate deals funded. So I go into a lot of detail.
Jay Conner [00:34:46]:
I don’t hold anything back, really lay out the carpet, pull the curtain back, and teach a lot about private money to get somebody started.
Brandon Cobb [00:34:55]:
Wow. This is fantastic news. Yeah. This is a game changer for your business. And, again, the same principles that he’s talking about are similar for, you know, raising capital in any endeavor. Consult an attorney before doing that. Right? Neither Jane nor Iza is an attorney. So always make sure you consult an attorney to make sure that you’re compliant and, you know, not doing anything wrong with the same stuff.
Brandon Cobb [00:35:16]:
No matter what you’re raising money for, it can be, applied. Same tools. Jay, for those that wanna learn more about you, learn more about your program, where can they go?
Jay Conner [00:35:25]:
Sure. So, of course, all my contact information is right there at www.privatemoneychallenge.com. And then in addition to that, come check out my podcast. I mean, you’re listening to Brandon’s podcast. Odds are, you like podcasts. You can find me very, very easily on all the platforms. Just search for raising private money, and there I am on the podcast. And, of course, I talk to people on the telephone.
Jay Conner [00:35:53]:
Can you believe that? I mean, you call me up and I pick up the telephone. Yeah. Yeah. But I’m easy to find at www.JayConner.com. And that’s with an e r, not a o r, www.JayConner.com.
Brandon Cobb [00:36:08]:
We’ll make sure that gets posted in the show notes, Jay. It’s been a pleasure.
Jay Conner [00:36:11]:
A pleasure, Brandon. Thank you so much for having me, and God bless you.
Brandon Cobb [00:36:15]:
Yeah. And if you’re listening to this episode, show Jay some love, show me some love, subscribe to the channel, like, share this with your friends and family. We will see you guys next time.
Narrator [00:36:26]:
Are you feeling inspired by the knowledge you gained in this episode? Then head over to www.JayConner.com/MoneyGuide. That’s www.JayConner.com/MoneyGuide, and download your free guide that shares seven reasons why private money will skyrocket your real estate investing business right now. Again, that’s jconner.com/moneyguide to get your free guide. We’ll see you next time on raising private money with Jay Conner.